The temporary Ontario Staycation Tax Credit for 2022 aims to encourage Ontario families to explore the province while helping the tourism and hospitality sectors recover from the financial impacts of the COVID-19 pandemic.
Ontario residents can claim 20% of their eligible 2022 accommodation expenses for leisure activities, for example, for a stay at a hotel, motel, resort, lodge, B&B, cottage, or campground, when filing their personal Income Tax and Benefit Return for 2022. You can claim eligible expenses of up to $1,000 as an individual or $2,000 if you have a spouse, common-law partner, or eligible children, to get back up to $200 as an individual or $400 as a family.
Short-term accommodation would generally not include timeshare agreements, or a stay on a boat, train, or other vehicles that can be self-propelled. Also, business travel is not included.
You are eligible to claim the credit if you are an Ontario resident on December 31, 2022.
The tax credit only applies to leisure stays between January 1, 2022, and December 31, 2022, regardless of the timing of payment for the stays.
How to claim the credit
You must keep your detailed receipts for any eligible expenses you incur. Those receipts should include at least all of the following information:
• the location of the accommodation
• the amount that can reasonably be considered to be for the accommodation portion of a stay
• the GST/HST paid
• the date of the stay
• the name of the payor
You can claim the credit on your personal Income Tax and Benefit Return for 2022.
The Ontario Staycation Tax Credit is a refundable personal income tax credit. This means that if you are eligible, you can get this tax credit regardless of whether you owe income tax for 2022.
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